Economics 2018 Jamb Examination

Inductive reasoning involves drawing general conclusions from specific observations.
This statement presents a predictive conclusion about efficiency based on the observed outcomes of privatisation in various economies.
It does not describe value judgement (normative) or factual analysis (positive), nor does it proceed from general laws to specifics (deductive).

Preferred stock (preference shares) provides shareholders with a fixed rate of dividend before ordinary shareholders are paid.
Debentures relate to borrowing and do not provide dividends, while bank loans and semi-fixed items are unrelated.

In long-run production analysis, all factors can be adjusted, meaning firms can change labour, capital, and scale of operation.
Therefore, no factor remains fixed; they are all variable in the long run.

Commercial banks keep reserves with the Central Bank primarily to allow regulation of credit and the money supply.
This enables the Central Bank to implement monetary policy by adjusting reserve requirements.
It is not mainly for advancing trade, preventing fraud, or discouraging operations.

Variance is the square of the standard deviation.\[ \text{Variance} = (8.2)^2 = 67.24 \]Rounded appropriately gives 67.2.

Economics studies how societies allocate scarce resources.
The ultimate objective is achieving efficient allocation for maximum welfare, which corresponds to making the best use of scarce resources.
Other options describe narrower goals, not the central economic objective.

Savings deposits are classified as near money because they are highly liquid and can be converted into cash quickly.
They are not call money (short-term loans), capital, or simply a fund.

Luxury goods exhibit high income elasticity of demand.
As consumers’ income rises, demand for luxury items increases significantly.
Thus income is the major determinant, more than price or tastes.

A flow variable is measured over a period of time (e.g., income per month, production per year).
Stock variables are measured at a point in time, while circular and static do not apply here.

Labour is generally the most mobile factor of production because workers can relocate or switch industries more readily than land or capital.
Entrepreneurship is limited by expertise and opportunity, making labour comparatively more mobile.